Income Tax

Personal income tax

Income tax

An income tax is a tax levied on the income of individuals or businesses . Various income tax systems exist, with varying degrees of tax incidence. Income taxation can be progressive, proportional, or regressive. When the tax is levied on the income of companies, it is often called a corporate...

 is applicable to total taxable income of an Individual and all individuals are taxed at progressive marginal rates over a series of income brackets. The tax year runs from 1 March to 28 February.

Tax rates for the 2010 tax year are as follows:

Taxable amount	Rates of tax
Where the taxable amount does not exceed N$ 40 000	0%
between N$ 40 001 and N$ 80 000	27% of the amount by which the taxable amount exceeds N$ 40 000
between N$ 80 001 and N$ 200 000	N$ 10 800 + 32% of the amount by which the taxable amount exceeds N$ 80 000
between N$ 200 001 and N$ 750 000	N$ 49200 + 34% of the amount by which the taxable amount exceeds N$ 200 000
over N$ 750 000	N$ 236 200 + 37% of the amount by which the taxable amount exceeds N$ 750 000

An employee's salary is normally paid in Namibian dollars (1 US Dollar = 7.37 Namibian Dollars approx.) and income tax is deducted by the employer. Its Capital city, Windhoek is currently ranked 150 overall, most expensive place in the world for expatriates to live. The cross border money transfer facilities are limited and expensive with one of the poorest currency buying and selling rates, because government does not want the money to be sent out of the country. There are no Western Union Money Transfer offices in Namibia.

Value Added Tax

A 15% Value added tax

Value added tax

A value added tax or value-added tax is a form of consumption tax. From the perspective of the buyer, it is a tax on the purchase price. From that of the seller, it is a tax only on the "value added" to a product, material or service, from an accounting point of view, by this stage of its...

(VAT) is applicable to almost every commodity. Basic commodities like sugar, bread etc. are exempted from VAT.